Resource Marshalling

Resource Marshalling is the process of controlling ones resources for maximum benefit. After assessing an opportunity, resources are required to get started. It is important to minimize and control resources rather than maximizing and owning them. Entrepreneurs are highly creative in how they exploit and maximize their resources; this is often termed “bootstrapping”. Entrepreneurs must not be consumed by the need for cash because cash is often unavailable. How, then, do you start something with nothing? Entrepreneurs find a way… Conventional thinking about resource marshalling is very cash-oriented, and the scarcity of cash in a new venture will often inhibit the risk-averse investor. To offset this potential for investor skepticism, as well as to decrease dependence on predictable cashflow, consider creative resource marshalling, such as: - Leasing equipment and property instead of burning through cash by purchasing everything. - Recruiting employees on a variable cost or incentive basis. Alternatively, many entrepreneurial firms conserve cash by offering equity to attract employees. - Negotiate the longest terms possible from suppliers to be able to use incoming cash from sales to pay them. Understand and use your resources; don’t be driven by them.